Today we are going to talk about starting your VA business on a shoestring budget. Well …. more like what you can do on a budget and what you can’t.
Welcome to another episode of the podcast that teaches you how to be a ridiculously good virtual assistant.
Today’s Quote: A business without a path to profit isn’t a business, it’s a hobby. – Jason Fried (Basecamp)
Click the play button above to tune in, or choose your favourite podcast player below:
Connect with Tracey D’Aviero, VA Coach and Trainer
Episode Notes:
Starting a service business like your VA business is relatively easy, because there isn’t a lot of startup, but let’s see how much of a shoestring you need. Let’s go!
I like a bargain. I check prices when I grocery shop.
I look for ways to save money on things that maybe others don’t.
I’m not afraid to admit that I am cheap. With some things.
My husband and son tease me all the time about some things that I save money on.
But I also know when I have to spend money on something.
So, this is definitely a podcast episode about starting your VA business on a shoestring – as the title indicates.
I’m not baiting and switching you, I promise!
I do tell Virtual Assistants that service businesses can be opened relatively easily – and you don’t need a huge startup fund to get going, but what I’m going to talk to you about in this episode is the following:
what you need to have to start professionally
what you will need to plan for down the road
what you may never need
and what you need to prioritize.
Need to Have
- cell phone
- internet
- office software
- dropbox account
- time tracking software
- paypal or other online payment option
- password manager
- social media accounts
- social media scheduler
You must have a dedicated space to work as well as dedicated equipment to do so.
Although you work from home and people may know that you have children, you want to keep business business as much as possible.
Yep, I said it … keep your kids away! No matter what age they are. Don’t share computers, don’t share space.
In order for you to maximize your work time, you need to not be distracted.
Time is money for your clients, and if it takes you 3x as long to get their work done because you are getting distracted, they will soon move on to someone else who can things turned around faster, or who charges them less for the work being done.
If you truly want your business to work, make it a huge priority.
That means your own cell phone, your own computer, your own desk and office space, with a door!
You also need high speed internet access. I probably don’t need to say much more about that, but there ya go. A strong and stable connection will help you get your work done efficiently. If you waste time because you lose connection or because your speed is slow, once again that is your client’ money you are wasting.
You will inevitably need office software like Microsoft 365 which I find well worth the low monthly price. I can access all of my files and work from my phone or other devices as I need to. You can also look at Zoho office or Open Office, but being that most of your clients will be using Word or something like that, you should be sure to pay for an annual subscription.
Cloud sharing is really important so our clients can find what they need when they need it. Dropbox is a great option – as is Google drive. Also if you are working for someone as a sub, they may require you to have access to one or both of these to share work. So just set it up when you start.
Time tracking software is essential and there are a lot of free options. Even if you don’t want to work by the hour (it’s pkay to do this) or give your clients detailed billing (please don’t do this) you still need a way to track your time so you know what you have spent your time.
One of the biggest problems VAs come to me with is not knowing how their monthly billing is so low when they feel like they work all the time. They are not managing their time well, that’s usually the big issue.
So track yours, so you know. It’s not about working fast, it’s about working efficiently.
PayPal is a great way to receive client payments. Your clients can use a credit card to pay you easily without you setting up a merchant of your own.
Yes there are fees associated with PayPal, but that is true about any online payment option (and they aren’t always that much less than Paypal). The fees are a business expense deductible for you, so work them into your rates and you won’t even have to think about them. You should be setting your rates covering all of your expenses anyway, but if you are wondering what you might incur, 5% should more than cover it. Usually a merchant will charge you 2 or 2.5 and sometimes a transaction fee on top of that. Paypal is on the higher end at 3% but again if you are using it, charge for it and claim it. And PayPal also allows to send and receive money in many different currencies.
Online payments are a convenience worth paying for. EFTs are an option in Canada but a US client can not pay you with one in Canada.
A password manager is essential for your VA business. If you are logging in to your client’s accounts, you need a safe way to do that. There are lots of options, some are free. All are cheap. I use Roboform and I love it. I have one master password to access my list of passwords, but each password in the system is unique and can be changed at any time. I can access all of my passwords from any device I have and that makes it easy to never have to remember anything.
You will need social media accounts, and yes those are free. Figure out where you need to be and what you want to use each for. I always suggest Facebook and Linked In for sure. You don’t need to use your personal FB profile for your business. I don’t. I don’t friend business acquaintances or clients. I join groups with my profile but that’s it. Anyone who wants to connect with me on FB does so through my page and my groups (and any groups I have joined).
Set up a page for your business. That’s what you will need on Facebook so people can check you out. Then link that page to your profile so that when people go to check you out, they can see your business page where they can follow you with a click.
LinkedIn is also a good place to be because it’s all business. It is a great place to find VA clients.
You should also have a way to schedule posts on social media so you don’t have to physically be going online all the time to post content. Scheduling also helps you to plan what you will post better, which is part of your time management.
I use Metricool and it’s free!
That’s all for what I think you need to have to start out. Pretty decent list and it’s very reasonable.
Plan For
What about what you should plan for?
- Scheduling software – this will save you lots of back and forth with clients and potential clients. There are reasonably priced options that send reminders, work with Google and iCal. It is professional and easy for clients to get into your calendar.
- Graphics software – Canva is by far the most popular. There is a free version but the paid version allows you to do so much more for about $15/month.
- Website – while you don’t need a website to get started, you should plan for one. A hosting plan can run you $100 a year for your first year, and maybe beyond too. Some companies offer a very cheap first year to get your business. One caution, you do not want to be moving your website every year, so budget for the cost of the second year from the start. And take the discount the first year. Other than hosting, design is the other thing. If you are not offering website creation as a service, it makes the most sense to have someone else set up a simple site for you and then learn on your own time to add to it and adjust it as necessary. That doesn’t have to cost thousands of dollars, but it will save you hundreds of hours of time if you try to learn it yourself. I’m not even kidding.
- Backup software – whether you use an external hard drive or a service like Carbonite for $60/year, it is well worth it to make sure you back up your documents files, programs and more.
- Project management – you may be able to manage your work without a project management system. If It’s just you and your client, you can use email and dropbox if you like, but it sure helps having checklists and stuff to keep everything organized. For $10/month Asana is a great option. Trello is free if the visual layout works for you.
- Bookkeeping software – makes things easier than doing it all manually! Quickbooks Online is a great option for about $25/month.
- Training – you will inevitably take training to improve your skills or business. Budget for it and plan to implement what you have learned asap to make the most of your ninvestment.
- Coach – because you know you want to work with me! The fast path to your goals.
- Insurance – business insurance is not mandatory for VAs but it is a good idea if you are working with sensitive information of your clients, or managing their reputation, or accessing their client data, and and and.. Plan for it as early as you can afford it.
- Taxes – plan for your taxes, because you will have to pay them! Save at least 30% and then plan for as many deductions as you can.
May Never Need
- website
- project management
- bookkeeping software
You may never need these but if you budget for them and set your billable rate accordingly, you can have them and your business will be more professional and efficient!
Prioritize This
Finally, what should you prioritize as expenses?
- Dedicated workspace and equipment
- Help with what you don’t know
- Time management stuff
- Security for your client’s data and info, and yours
I’m going to leave it here for today … I could literally go one for hours about how to set up your VA business, run it professionally and efficiently!
I know I covered a lot, but look at all the time I spent on what you need that isn’t going to set you back tons of cash. Not too much expense, eh?
But let’s circle back to today’s quote: A business without a path to profit isn’t a business, it’s a hobby. – Jason Fried (Basecamp)
If you want to run a solid, profitable business, you need to spend money. You need to know your expenses and manage them well – and don’t be afraid to invest in stuff. It’s your path to success.
That’s what I want you to know today. What is most important.
I hope you have a good list going right now!
I can help you with advice just like this about all areas of your business!!
Need Some Help?
This is exactly what I help VAs do. As a VA coach and trainer, I help you set yourself up for success, helping you fix the specific things that are going wrong in your business. When we work together either privately or in a group we talk specifically about your business and you – there is no one stop solution for everyone when it comes to service businesses like VA businesses.
I’ll help you get clarity around your issues, and cheer you on as you walk through the steps to fix them.
I’ve helped hundreds of VAs through their challenges and got them on their way to growing their business and the lifestyle that they dream of.
I’d love to do the same for you.
You can work with me privately, or you can join The Virtual Circle, my mastermind group for Virtual Assistants. Check it out at www.YourVAMentor.com/TVC (the virtual circle) – I bet it’s exactly what you need to start running the VA business you dreamed of.
Reach out to me if you are interested.
That’s all I’ve got for you this week, see you next time!